Lecture 10 Flashcards
(41 cards)
What is a distribution Channel?
The chain of intermediaries or processes through which products or services reach the consumer
What are the examples of distribution channels?
Wholesalers, retailers, distributors, self-service kiosk, email, call center, direct salesforce, internet and digital platforms.
What is the role of distribution channel members?
Marketing channels move products and services from producers to consumers. The main role is to overcome time, place and possession barriers that separate products and services from those who need or want them.
What is the key functions of distribution channel members?
3 communications
Forward Flow: from company to customer. Backward flow: From customer to company. Bidirectional flow: both directions.
What are the different distribution channel levels, and what defines them?
Zero-level channel: Sells directly to customer. One-level channel: One intermediary. Two level channels: Two intermediaries. Three level channels: Three intermediaries.
What are the 5 service outputs provided by channels, and what defines them?
Lot size: The number of units per purchase. Delivery time: the average time customers wait to receive goods. Spatial convergence: The (geographic) ease of purchasing a product. Product or service Variety: The assortment provided by the distribution channel. Service Back-Up: Add-on services (credit, delivery, installation etc.)
What are the 3 major channel alternatives?
Intensive: Distribution through every reasonable outlet in the market. Selective: Distribution through multiple, but not all reasonable outlets in the market. Exclusive: Distribution through a single wholesaling intermediary.
Which Two factors should each channel be evaluated against?
Economic criteria: The produced levels of sales and costs. Control and adaptive criteria: The level of control and adaptability of the offering. Higher adaptability provides a higher ability to respond to change.
In channel design decision one must consider which 4 factors?
Analyzing customer needs: customers may prefer different channels depending on their desires. Establishing objectives: identify distinct segments based on desired services. Number of intermediaries. Consider economic and control criteria’s.
What is Channel Power?
The ability to alter channel members’ behavior so that they act differently than what they would have done otherwise.
When selecting Channel member marketers should continuously….
Evaluate what characterizes the better intermediaries.
What is a conventional Channel?
Each producer, wholesaler and retailer are separate businesses, and each is trying to maximize its own profit, even if it reduces profit for the entire system.
What is a Vertical Marketing system?
Producers, wholesalers and retailers act as one unified system.
What is a horizontal marketing system?
Two or more unrelated companies put together resources or programs to exploit an emerging market opportunity. (collaboration)
What is the definition of channel conflict?
When one channel member perceives another channel member to be acting in a way that prevents the first member form achieving its goals.
What is multichannel marketing?
When a company uses two or more distribution channels to reach one or more customer segments. All channels are available but not connected or cross integrated with each other.
What is Omnichannel marketing?
A multichannel approach that gives customers a seamless experience across all digital and physical channels. All of the channels are available and are connected.
What is service process design?
Describe and prescribe the procedures to be followed in service delivery.
What are the 4 core aspects to consider within service process design?
Degree of technology used: human vs tech interaction. Degree of visibility: Seen or hidden from customers? Degree of customization: Individualized or standardized? Degree of accessibility: Easy to access?
What are 5 primary forms of variability within service process design?
Arrival variability: Customers like to arrive at different times. Request variability: Customers may request different things due to differing preferences. Capability variability: Customers differ in abilities and capabilities in the service process. Effort variability: Customers differ in the effort they want to be made. Subjective preference variability: Customers personal preferences.
Less variable services easier to handle, which measures to marketers use to manage variability?
Accommodation: More variability with different levels and fees. Reduction: Less variability accepted by customers through a low price.
What is the zone of tolerance in service design?
The zone of tolerance is the space between desired and minimum acceptable standards.
What are the 5 determinants of service quality?
Reliability: Able to be dependable.
Responsiveness: Willingness to provide prompt service.
Assurance: Knowledge and ability to convey trust and confidence.
Empathy: Provision of caring and individualized attention to customers.
Tangibles: Appearances.
What is service recovery?
The way an organization responds to what is perceived as a service failure and takes action to prevent and address in order to make customers satisfied again.
